ForexSpirit

Today was like a mirror copy of yesterday’s, from the way price unfolded to the way I traded.

Yesterday’s London and Asian sessions saw price dip back down to 1.3750, while the London session was straight back up to 1.3837 in a nice smooth bullish move. So price was approaching the 1.3850 level again, which has been the high of the week so far.

After another bullish morning, I anticipated a lull and thus a rangebound hour but with a bullish bias.

Bias: long
Conviction: medium

What I didn’t factor in enough was my own advice (first documented on February 15th): the 6:00 EST hour often sees retracements and is thus a prime candidate for counter trends.

My mindset this morning was looking for bullish signals. Thus why I took the breakout entry that started the red sequence. And followed it up with a second entry when price pulled back to test the prior resistance level.

If I had been looking at things with a counter trend bent then I would have done things completely differently. Instead of looking for a breakout I would have been looking for a breakout failure. Thus, most likely the area where I placed the second red entry would have instead become the first of a short sequence, anticipating that price had just failed to breakout long and would retrace to the far side of the prior range.